Fact based stock research
Thermo Fisher Scientific (NYSE:TMO)

US8835561023

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Thermo Fisher Scientific stock research in summary

thermofisher.com

ANALYSIS: With an Obermatt Combined Rank of 48 (worse than 52% compared with investment alternatives), Thermo Fisher Scientific (Life Sciences Tools & Services, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Thermo Fisher Scientific are a good value (attractively priced) with a consolidated Value Rank of 77 (better than 77% of alternatives) but show below-average growth (Growth Rank of 49), and are riskily financed (Safety Rank of 25), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 48, is a hold recommendation based on Thermo Fisher Scientific's financial characteristics. As the company Thermo Fisher Scientific's key financial metrics exhibit good value (Obermatt Value Rank of 77) but low growth (Obermatt Growth Rank of 49) and risky financing practices (Obermatt Safety Rank of 25), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 77% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	77
Growth Rank	49
Safety Rank	25
Combined Rank	48

Country	USA
Industry	Life Sciences Tools & Services
Index	Dividends USA, Diversity USA, S&P 500
Size class	XX-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Thermo Fisher Scientific

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	58	83	78	77
GROWTH
GROWTH	79	25	13	49
SAFETY
SAFETY	43	41	14	25
SENTIMENT
SENTIMENT	n/a	75	92	^new
360° VIEW
360° VIEW	n/a	69	43	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 28-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Thermo Fisher Scientific is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	58	83	78	77
GROWTH
GROWTH	79	25	13	49
SAFETY
SAFETY	43	41	14	25
COMBINED
COMBINED	61	39	15	48

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Thermo Fisher Scientific the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 77 (better than 77% compared with alternatives) for 2024, Thermo Fisher Scientific shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Thermo Fisher Scientific. Price-to-Profit (also referred to as price-earnings, P/E) is 65 which means that the stock price compared with what market professionals expect for future profits is lower than for 65% of comparable companies, indicating a good value concerning Thermo Fisher Scientific's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 42, which means that the stock price is lower as regards to invested capital than for 42% of comparable investments. On the other hand, Price-to-Sales is less favorable than 61% of alternatives (only 39% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 20% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 77, is a buy recommendation based on Thermo Fisher Scientific's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	58	62	40	39
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	77	53	61	65
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33	30	33	42
DIVIDEND YIELD
DIVIDEND YIELD	76	76	79	80
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	58	83	78	77

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Thermo Fisher Scientific; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Thermo Fisher Scientific shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Thermo Fisher Scientific. Only Capital Growth has a good rank of 76, which means that currently professionals expect the company to grow its invested capital more than 43% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 26 which means that currently professionals expect the company to grow less than 74% of its competitors. Profit Growth with a rank of 43 and Stock Returns with a rank of 49 are also low (below 51% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Thermo Fisher Scientific is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	76	31	12	26
PROFIT GROWTH
PROFIT GROWTH	45	46	48	43
CAPITAL GROWTH
CAPITAL GROWTH	n/a	27	17	76
STOCK RETURNS
STOCK RETURNS	68	67	53	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	25	13	49

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Thermo Fisher Scientific.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 25 (better than 25% compared with alternatives), the company Thermo Fisher Scientific has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Thermo Fisher Scientific is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Thermo Fisher Scientific. Liquidity is at 59, meaning the company generates more profit to service its debt than 59% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 23, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 77% of its competitors. Leverage is also high at a rank of 27, which means that the company has an above-average debt-to-equity ratio. It has more debt than 73% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 25 (worse than 75% compared with alternatives), Thermo Fisher Scientific has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	12	22	20	27
REFINANCING
REFINANCING	68	39	17	23
LIQUIDITY
LIQUIDITY	57	68	61	59
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	43	41	14	25

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Thermo Fisher Scientific and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	50	73	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	53	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	75	86	^new
MARKET PULSE
MARKET PULSE	n/a	56	75	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	75	92	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Thermo Fisher Scientific.
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